Oracle (ORCL) Stock Gains Today Following Earnings Beat, Upbeat Cloud Computing Expectations
NEW YORK (TheStreet) -- Oracle (ORCL) - Get Report shares are up 4.04% to $44.57 in early market trading on Wednesday after the enterprise software and computer hardware products and services provider reported its third quarter financial results after the closing bell yesterday.
The company's revenue was hurt by a strengthening U.S. dollar that resulted in diminishing returns on the international market, causing the company to generate revenue that was flat on a year over year basis at $9.3 billion. The company also reported a diluted EPS of 65 cents per share, topping Zack's consensus estimate of 64 cents per share, though revenue fell short of the $9.5 billion they expected.
Cloud revenues, including SaaS, PaaS and IaaS, were a strong point for the company, up 29.2% over the previous year to $527 million, helping Oracle's cloud revenues to surpass the $2 billion run rate.
The company reported that cloud bookings have grown over 100% each year with both its Human Capital Solution and Fusion divisions reporting triple digit growth in bookings during the quarter.
For the current quarter the company expects total revenue to increase between 1% and 6% over the same period last year while combined software and cloud revenue is expected to jump another 2% to 6% in the period. Cloud revenue alone is expected to rise 27% to 33% in the quarter.
TheStreet Ratings team rates ORACLE CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate ORACLE CORP (ORCL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: ORCL Ratings Report
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